

What: Shares of Annie's, Inc. (NYSE: BNNY) were getting overcooked today, falling as much as 11% after a disappointing third-quarter earnings report.

So what: The maker of organic food products said sales were up 21.7% to $46.2 million, beating estimates at $45.9 million, but higher costs meant adjusted earnings per share improved just 7.6% to $0.17, a penny short of the consensus. This was the third quarter in a row that Annie's missed estimates by a penny, and CEO John Foraker noted "tight supply conditions in the organic wheat market," but was also upbeat about "accelerating momentum in consumption."

Now what: What really seemed to send shares falling was the company's reduced guidance, as it now sees full-year EPS of just $0.92-$0.93, below estimates at $0.97 and a previous range of $0.97-$1.01. For a high-priced growth stock like Annie's, dropping guidance is likely to cause a sell-off, so investors shouldn't be surprised by today's reaction. Still, with top-line growth expected to hold near 20% and a well-respected brand with plenty of opportunity ahead of it, this could just be a speed bump on the road to a bright future for Annie's.